Entrepreneurialism, Innovation and Why Quality Matters

Transcription

1 Entrepreneurialism, and Why Quality Matters The combina-on of research and enterprise are the supreme source of produc-vity and wealth. - - George Gilder Tom Brink Top Dollar Angus, Inc. Research produces knowledge. Knowledge plus enterprise = new technology New technology creates produc-vity, efficiency, and new business opportuni-es. U.S. Average Corn Yield (bushels per acre) 3: : ; ;2 3: 3:

2 Three types of practices in your operation: 550-lb. Steer Calf Price $278.38/cwt. doing what could work doing what does work doing what did work what could work RISK what does work what did work Let s examine a few prac-ces Rotational vs. Continuous grazing 2

3 Examining a few more prac-ces Pregnancy tes-ng A.I. and embryo transfer Fetal sexing Vac45 programs DNA tes-ng Selling non- castrate commercial males Marke-ng assistance for customers Ac-ve selec-on for carcass traits Mindsets can be bound by TRADITION too Con-nental catle perform beter than Angus in the feedyard Low birth weight catle can t be growth catle Dehorning is not really that much work EPDs do not work Always use a hotshot to keep those %&+@?*# s moving You can t have maternal catle that are carcass catle too All Angus catle are high in marbling Keep costs down- - - starve a profit out of your cows I don t care about my commercial calves a^er they re sold Would you like to own these feedyard catle? Lot % pulled once 16% pulled twice One dead out of 113 head. Lot % pulled once 15% pulled twice Three dead out of 117 head. Un- weaned days on feed in TX. Circle two that best fit your opera-on Circle two that best fit your opera-on Circle two that best fit your opera-on 3

4 20% Part of being an innovator is providing gene-cs that benefit the en-re beef supply chain. Probably a good balance for most operations. 70% 10% Wholesale Meat Values (31-Oct-14) Why Quality MaTers &522 Beef competes on taste and quality, not on price. &472 &422 &372 &322 &72 Rqtm Future of Pork Produc-vity?! Industry Average Nebraska Operation Market Hogs Per 500-lb. Sow Per Year < 7,000 lbs. > 9,000 lbs. Ej kemgp Eqy "Ewvqwv Ugngev Ej qkeg ECD Fktgev"Uncwi j vgt"ecvvng"rtgo kwo u"cpf "Fkueqwpvu """"""Swcnkv{ "I tcf g"xcnwg"cf lwuvo gpvu< """""Y gki j vgf "Cxgtci g "Y ggm"qh"32/49/36 Rtko g ECD Ej qkeg Ugngev Uvcpf ctf /34075 /43068 Always listen to the market. Marbling creates price premium opportunity. Yield Grade 4 discounts have gotten SMALLER in the past 10 years on most grids. 4

5 Big Grid Winners versus Average Cattle Superior quality grades drive grid premiums higher. 100% 90% Profiling Real Value Crea-on for Feeders and Packers Same calf crop (59 head in total) Sold April 2014 Prime 80% Top 10 steers Bottom 10 steers 70% Choice Difference Carcass Weight Marbling Score Ribeye Area Backfat Per Head Live Sale Value Price $ 2,397 $ $ 1,940 $ $ 457 $ % Top steers grew faster, had heavier weights, more marbling, larger ribeyes, same degree of finish. 50% They were healthier and had better genetics. 40% Average Cattle $125 Premium $164 Premium HEALTHY ca1le that GROW & GRADE are Winners! Certified genetics in the Top 25% for growth and carcass traits. One million head of demand at $50+ per head above the average market. On being an Entrepreneur Takes a really good idea Spend money slowly and carefully Pa-ence, pa-ence, more pa-ence Eat the word No for breakfast Link up with the like minded Genetics so good, they need their own name. 5

6 Thanks to Angus for listening to the market, paying attention to all segments of the industry, AND for giving us better genetics to help the beef business prosper. Angus wins the award for most entrepreneurial U.S. beef breed during the past 25 years. The End